There’s a lot more players in that segment. I think given the uncertainty around growth, highly contracted businesses tend to be have less divergence in views as far as valuations than, say, businesses with growth wedges. So that again, that’s something to keep in mind. But then you also have the dynamics that, some regions are in a different spot than others. I mentioned South America and Brazil, they got ahead of the curve, as far as tackling inflation and increasing interest rates and rates there now are expected to drop pretty meaningfully over the next couple of months. And I’d say the market has improved significantly, and the enthusiasm in that market is actually quite high, compared to some markets where people are a little more skittish.
So, I think one of the big benefits and this is where we highlight in our letter, and we said in the past, is having a business that’s very diversified across many regions. We can bring assets to sale and regions where people are more constructive, and there’s lots of access to capital, and then in those regions where things are less constructive, we tend to be looking for opportunities there to buy.
Devin Dodge: Okay. No, I appreciate that. That’s good color. Okay. I’ll switch over to the deal announced this morning, was in a general sense, but I think it’s fair to say that your initial investment in a retail colocation data center business has been at least a bit of a challenge. Can you talk about the improvements that have been made at Evoque over the last couple of years and how the addition of the Cyxtera assets will further those efforts?
Sam Pollock: Okay. So, maybe I’ll start and I will turn over to Ben here to talk about the things that we’ve done. And yes, I think it’s fair comment that the first couple years have been challenging as we work through our tenant base there. But it has been a business that over the last I’d say year and a bit, we’ve seen a real turnaround in its leasing profile and leasing success. So maybe Ben will touch on that. But as far as this Cyxtera, the real opportunity here is, the ability to not only buy for value but also execute a multifaceted transaction where we can reunite some of the underlying land leases that are associated with the Cyxtera assets, combined some of those, as well as the data centers in Cyxtera. And then take that set of assets, combine it with our business, which is largely data centers with real estate that’s owned, take advantage of significant synergies from a sales and cost perspective where we can really reduce the overhead as a percentage of revenue quite dramatically, because of the combination of the two businesses.
And then, especially finance the businesses, because now you have much more scale, as well as mostly owned real estate. And so it really is a very, very different business than what the two were separately. And so we’re very excited by that. And obviously, I think the real wins can be the fact that we’re buying at a time when the tailwinds are really just starting for the edge type centers that we have. I know, Ben, if you want to add a little bit more what we’ve done with Evoque.
Ben Vaughan: Yes. Maybe as we’ve talked about on a few calls in the past, what we’ve been up to at Evoque is, when we bought the business, it was in a moment when some enterprise clients, there was a significant migration towards the cloud. So what we did is, we worked to improve our data centers, and position them both to be attractive to hyperscalers, as they need to move to the edge, continue to be attractive to enterprise clients. And also, today we’re seeing large demand from smaller companies engaged in AI businesses. And so with the underroof upgrades that we undertook over the last many years, the business today has a tremendous call on its capacity utilization is going up tremendously. We’ve had record sales quarters, like I said, enterprises coming back into retail, colo, hyperscalers are looking for edge applications and AI clients have tremendous demand.
